In the Gettysburg Address President Abraham Lincoln described our government as “of the people, by the people, for the people.” He was, of course, entirely correct.
Our people elect fellow citizens to make up our government. It also exists for the benefit of the people. But as our government attempts to maintain order over our citizens it also uses its power to regulate our currency.
However, our society today is leaning more toward individualism and decentralization. This is challenging governmental control. Social media has given new meaning to freedom of speech. It has put it directly under the power of the people.
Needless to say, decentralization of our currency through blockchain may not be far behind. The only question is, will blockchain go mainstream any time soon?
What is Blockchain?
In order to know if blockchain will go mainstream any time soon, you must first know what it is. Blockchain uses computer code to create secure transactions over multiple computers. Therefore, the digital records created during these transactions are decentralized.
Why is Blockchain Secure?
Since business conducted using blockchain is not located on a single data base or computer it makes it very secure. Monetary and other types of transactions are completed over multiple computers in a “chain” instead. This makes both theft and forgery of information in the blockchain nearly impossible.
Secured transactions through blockchain can also be continually updated. But, they also remain secure during updates.
Who Can Use Blockchain?
Blockchain has the potential to be used in many different ways. It could be used by retail stores, both physical and online, for monetary transactions. But it can also be used to transfer data between different parties.
For instance, hospitals, clinics, and other medical facilities can use blockchain to keep patient records secure. Using blockchain technology means political or historical events can be recorded accurately and without the threat of altering.
What Are Some Advantages of Blockchain?
There are advantages to using blockchain to transfer electronic data and money.
1. Time Savings
Blockchain can help save time. For example, blockchain allows credit card transactions to be nearly instantaneous. A regular transaction has to go through many steps that can be skipped with blockchain.
This is especially true for international transactions. Exchanging currencies at a bank would no longer be an issue.
2. Lower Costs
Many business hope to become paperless, but few actually achieve that goal. Even my own online business still generates some physical paperwork now and then.
Blockchain could allow businesses striving to go paperless actually achieve that dream. Information no longer has to be printed or transferred by other means.
No more buying paper and ink, or at least, much less use of them. In addition, the time savings as well as reduced supplies costs can help businesses lower their expenses and increase revenues. Higher profit is something we can all get behind for our businesses.
Will Blockchain Go Mainstream?
Certainly blockchain has many promising reasons to stick around and go mainstream. But the idea of decentralizing currency is also a very scary concept to some. It takes control of currency away from banks and governments. Instead it’s puts in the hands of the people.
I think blockchain will go mainstream at some point in the future. Right now we appear to be taking baby steps. But, it’s only a matter of time before it becomes the norm.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.